Overrunning means tacit acceptance of an excess
Article 3(19) defines overrunning as a tacitly accepted overdraft whereby a creditor makes available funds exceeding the current balance in the consumer's current account or exceeding the overdraft facility already agreed. Unlike an explicit overdraft facility, it is not the original contractually arranged authorisation to borrow up to a stated limit. An account may permit a transaction despite insufficient available funds, or allow a consumer temporarily to exceed an existing overdraft limit. The legal classification should reflect the account terms, the creditor's conduct and whether the excess is truly tacitly accepted. Unpaid transactions that the provider declines may not create the same situation. The exact arrangement, not the informal label overdraft, establishes which rule set to test.
Article 2(4) limits the provisions that apply
Overrunning is subject to a specific scope rule. Article 2(4)(a) makes Articles 1, 2, 3, 17, 19, 25, 31, 35, 36 and 39 to 50 applicable to overrunning. Article 2(4)(b) additionally makes Article 18 applicable unless the Member State determines otherwise. This limited application differs from the wider set potentially relevant to an expressly agreed overdraft facility or instalment loan. A compliance inventory should list the exact provisions instead of assuming that every CCD2 advertising, pre-contract and agreement rule applies to overrunning. Nor should it imply that overrunning is completely excluded from consumer protection. Country-specific choices and separate applicable national financial-services law remain relevant.
Account agreement and recurring consumer information
Article 25(1) requires the agreement opening a current account, when overrunning is possible, to include information on that possibility, the borrowing rate, rate conditions, relevant indices or reference rates, and charges and changes to them. It requires the creditor to give that information on paper or another durable medium selected by the consumer and specified in the account agreement on a regular basis. Simply displaying a rate on an ephemeral screen is not necessarily equivalent to the legally prescribed form and content. A bank should verify how customers receive account terms, whether changes in rates and fees are represented accurately and whether records preserve the operative information. These controls concern the current-account relationship even where an overrun occurs only occasionally.
Significant overrunning lasting beyond one month
Article 25(2) addresses significant overrunning that extends for more than one month. The creditor must inform the consumer without delay on the agreed durable medium of the overrunning, amount, borrowing rate, applicable penalties or charges and repayment date. In cases of regular overrunning, the provision also calls for the creditor to offer advisory services where available and direct consumers without charge towards debt advisory services. Operations must distinguish one-off temporary excesses from significant overrunning of more than one month and repeated patterns of overrunning. The Directive does not supply a universal numeric amount defining significant for all accounts. Review the applicable national measures and any official interpretation before hard-coding a threshold. Keep a traceable event and communication history.
Notice before eliminating or reducing permission to overrun
Article 25(4) requires notice in an agreed manner at least 30 days before overrunning ceases to be allowed or its limit is reduced. A creditor must distinguish this rule from the provisions for changing an explicitly agreed overdraft facility under Article 24. If the account is already negative, another part of the legal analysis may concern repayment and the customer's broader financial circumstances. Chapter VII also preserves relevant national rules on how significant or persistent overrunning can be handled. A servicing team should know which notice is triggered, who approved the decision, what date the change takes effect and how a consumer may seek assistance. Check the exact national implementing text and any more stringent domestic protections.
Creditworthiness option and transition for legacy accounts
The express Article 2(4)(b) choice on Article 18 is important: creditworthiness rules for overrunning are not uniform in every Member State by default because the Directive allows a national decision otherwise. A lender should not present such an option as already exercised without the country's enacted legislation. CCD2's national measures apply from 20 November 2026. Article 47 also extends the second sentence of Article 25(1) and Article 25(2) to existing open-end credit agreements at the transition, where their conditions are satisfied. An account may therefore require updated continuing information even if originally opened earlier. Record national application dates and agreement types before determining operational obligations.
An event-based testing plan for overrunning
Map the account's available balance, explicitly agreed overdraft amount, tacit acceptance terms, rates and fees. Simulate transactions that exceed the balance and those that exceed a separate agreed facility, identifying the legal status of each event. Test when an overrun becomes significant and lasts beyond one month, when it recurs, and when the institution lowers or removes permission for future overrunning. Verify the correct durable-medium content, notices and advice referral. The legal assessment should cite Article 2(4), Article 3(19), Article 25 and the actual Member State law. Maintain sample account records and alerts, and ensure software rules do not silently treat every negative balance as the same product.
Frequently asked questions
Does the product label settle whether CCD2 applies?
No. Article 2 and Article 3 definitions, the agreement's legal terms, and national implementing law determine treatment.
When do CCD2 national measures apply?
Member States are required to apply their implementing measures from 20 November 2026, subject to Article 47 transitions.
Can requirements differ for similar financial products?
Yes. Explicit overdrafts, tacit overrunning and leasing with or without purchase rights have different scope rules.
Primary sources
Directive (EU) 2023/2225, EUR-Lex ↗Read the source in its current version. National implementing measures and product-specific applicability may require additional research.